Cobalt International Energy, Inc. (NYSE:CIE) has filed its financial results and operational update for the 3Q2016. The company recorded a net loss of $213.7 million for the 3Q2016, as compared to a loss of $49.7 million in the previous year. CIE noted that the surge in net loss was mainly attributable to the Rowan Contract Amendment, worth $95.9 million. In addition to this, the company also experienced a write-off of $42 million, associated with the Goodfellow exploration well.

In the report, the company also stated that it was updating its capital expenditure guidance, for the FY2016, after having spent $380 million, up to the end of the 3Q2016. CIE now expects to record capex of $525-$575 million, for the FY2016. Moreover, Cobalt also expects to use $725-$775 million of its cash, during the same period. It should be noted here that at the end of the 3Q2016, the company had a cash position of approximately $683 million. This does not include $17 million, held in discontinued operations.

During the FY2016, Cobalt also plans to spend an approximate $130-$140 million for operations on Angola blocks 20 and 21. This amount is in addition to the aforementioned expenses and $130 million have already been spent, as of September 30, 2016. The company also revealed that it plans to sell its 40% interest in the Angola blocks. Although Cobalt has stated that it was receiving a significant amount of interest in the properties, it is yet to find a buyer.

Following the results, CIE started to plunge in the market, as investors began dumping the stock. Analysts believe that it is crucial for the company to quickly sell of its Angola assets, given that it has large spending levels and a fast depleting cash position.

Cobalt International Energy, Inc. (NYSE:CIE) closed at a share price of $1.02 per share, at the end of the November 1 trading session, 8.04% higher than the day before, on a trade volume of 9.31 million.